Metrobank affiliate Global Business Power Corp. (GBPC) is planning to expand its coal-fired power plant in Iloilo City, which will nearly double the facility’s capacity from 164 megawatts to 314 MW.
In a statement issued Tuesday, Global Business Power said its subsidiary, Panay Energy Development Corp. (PEDC), had signed a memorandum of understanding with Formosa Heavy Industries for the conduct of a study on and the reconfiguration of the expansion plan in Panay. Under the MOU, Formosa will handle the design, engineering, procurement process and construction of the proposed power unit.
Instead of the original plan of installing two units with capacity of 82 MW each, PEDC has opted to put up one unit with generation capacity of 150 MW.
The MOU signed by PEDC and Formosa amended the contract they entered into in March this year to reflect the changes in the plan.
Based on the original plan, the two 82-MW units in Panay Island were supposed to be completed in late 2014.
“However, the very evident elevated economic activity on the island may warrant the construction of a single but larger plant of 150 MW which can reduce PEDC’s per kilowatt hour generation charges on customers,” it said.
“The completion of the clean coal technology last year has allowed the expansion in economic activity in the area, improved the reliability of power supply and reduced electricity costs by at least P3 per kilowatt-hour. The construction of a new unit on the same site in La Paz, Iloilo City is a reflection of our continuing commitment,” said Global Power chair Francisco Sebastian.